I didn't even think of oat milk when posting yesterday's ICYMI: "Dean Foods, America’s biggest milk producer, files for bankruptcy".
MarketWatch:
Sales of plant-based milk alternatives are growing, but it’s not the only reason for a decline in milk consumption
Oat milk and other alternatives contributed to the bankruptcy filing this week of milk producer Dean Foods Inc., but the biggest drain on milk sales is an entirely different liquid: water.....MUCH MORE
For the six weeks ending September 8, 2019, about 400 million gallons of milk were sold versus fewer than 100 million gallons of plant-based milk alternatives, according to data presented in a report from the National Milk Producers Federation (NMPF). The NMPF is an advocacy group launched in 1916 for dairy producers and their cooperatives.
A drop in cereal sales and a decline in the number of households with children are also factors in falling milk consumption.
A 2017 study from IRI, a data and analytics company, found that 53% of the volume milk lost went to bottled water drinkers.
Consumption of bottled water has exploded, surpassing soda and reaching more than 39 gallons per capita in 2016.
U.S. Department of Agriculture data shows that milk consumption on an annual per capita basis reached a low point of 146 pounds in 2018, down 39% over 40 years. Dairy consumption overall has risen by nearly 20%, however, thanks to items like cheese and yogurt.
“Conventional milk is leaking slowly,” said Paul Ziemnisky, executive vice president of global innovation at Dairy Management Inc., a group funded by more than 37,000 dairy farmers in the U.S. and dairy importers.
But even milk has “pockets of growth,” he said, with coffee consumption at places like Dunkin’ Brands Inc. DNKN, -0.32% and Starbucks Corp. SBUX, -0.04% driving milk use and an increased consumption of creamers.
Still milk, particularly low-fat varieties, are a volatile part of the dairy category, Ziemnisky said.
Dean Foods’ product lineup is heavily weighted toward milk....
